TaxTMI 
TaxTMI 
2015 (9) TMI 1289
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....nts I Fund - Trust has filed its return of income by admitting NIL income for the assessment year under consideration. The return filed by the assessee was selected for scrutiny and after due process, the assessment was completed under section 143(3) of the Income Tax Act. In the assessment order, the Assessing Officer has observed that during the course of scrutiny proceedings, it was noticed that the assessee has collected Unit Contributions from 65 Contributors amounting to Rs..40,35,34,375/-. These contributors are classified as High Net Individuals by the assessee. This contribution has been called-up and received by the assessee on various dates during the course of the relevant previous year. A perusal of the details indicates that t....
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....erest income arising from the contribution made by HNI (High Networth Individuals) Contributors with the assessee gets transferred to the Growth Fund is not acceptable. Even after the funds go into the possession of the Growth Fund, it is the assessee who is answerable to the Contributors and therefore, the assessee's point of view is not tenable. It would be worthwhile to note, in this regard, that even the TDS Certificates issued by the respective banks on the deduction of tax on the interest paid has been issued only in the name of the assessee and not in name of the Growth Fund. In the circumstances, the interest income derived by the assessee from Banks is assessable in the assessee's hands only. Accordingly, the interest income of Rs.....
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.... expenditure as per their share of beneficial interest for including the same in the return of income filed by the respective beneficiaries. All the beneficiaries are having their PAN indicated the share of beneficial interest in the return of income filed by the appellant. The appellant being a representative assessee filed its return of income as 'Nil' Indicating the fact the income/expenditure is being offered by the respective beneficiaries in their return of income filed for the assessment year The appellant claimed a refund of Rs. 28,04,614/-on the Tax deducted at source on the interest received on behalf of TVS Shriram Growth Fund since the investments were made in the name of the appellant. 5.1 The Assessing Officer rejected in h....
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....meeting its operational expenses thus makes it clear the objective of earning profit. I concur with the view taken by the Assessing Officer that because of the appellant commercial activities, it is carrying on business activity even transferring a part of contribution to TVS Shriram Growth Fund itself indicating a profit motive carried on by the assessee during the assessment year under consideration. The Assessing Officer placed his reliance in support of treating the activity of the business on the decision of the Apex Court in the case of Manmohan Das (Deceased) Vs. CIT 59 ITR 699 (SC) which IS squarely applicable In the case of the appellant. Similar view has also been expressed in 25 ITR 449 (Lakshminarayan). Hence, the appellant's ve....
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....n the other hand, the ld. DR has submitted that the assessee has not produced any evidence before the Assessing Officer that the interest income received by the assessee has been transferred to the beneficiaries. In so far as tax rate is concerned, the beneficiaries' rate is different from the assessee and therefore, the same tax rate cannot be applied. 8. We have heard both sides, perused the materials on record and gone through the orders of authorities below. The assessee, M/s. TVS Investments I Fund - a private trust, collected Unit Contributions from 65 Contributors amounting to Rs..40,35,34,375/-. These contributors are classified as High Net Individuals by the assessee. This contribution has been called-up and received by the asse....